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Volume 23, Issue 9, Jim Carnegie, Editor & Publisher
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Friday Morning January 13th, 2006
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TV News ®
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 Startup wants to buy Nielsen
ErinMedia owner Frank Maggio says he's serious about trying to buy Nielsen Media Research if and when VNU is sold off in pieces - - not because he wants to own the ratings company as it stands, but because he wants to change its technology. ErinMedia already has an antitrust suit pending against Nielsen (6/17/05 TVBR #119), claiming that Nielsen is using monopoly clout to block ErinMedia from launching a competing TV ratings company which would be based on data collected 24/7 from millions of cable TV set-top boxes. Now a second lawsuit has been filed charging Nielsen with false advertising for a trade magazine ad that reads "Thousands of shows...millions of different viewers...Nielsen counts them all." Maggio told RBR/TVBR that's not true, because Nielsen actually has fewer than 10,000 meters in its national sample. "They're saying they do what we can do - - and they can't do," he said. For its part, Nielsen isn't talking. "We have not received a copy of the complaint and at this point cannot comment," was the official company response. (FYI: It is posted on ErinMedia's website.) Maggio wouldn't have to worry about suing Nielsen if he owned Nielsen, so he's trying to raise four billion or so to bid for the ratings company and a couple of related operations if parent VNU is sold to buyout firm, which in turn wants to sell off the pieces. "The value that Nielsen has right now is they have attractive contracts - - essentially that's what the valuation model is built upon," Maggio said. He'd then switch TV ratings over to ErinMedia's new technology. But he thinks the diary operation at Nielsen might still have a use - - perhaps in radio, where ErinMedia already has a deal pending to acquire Navigauge.
TVBR observation: We hear lots of TV managers and ad buyers pressing for Nielsen to get away from Local People Meters and adopt Arbitron's Portable People Meter technology ASAP, but we've yet to hear anyone in the business tout ErinMedia's technology as a viable replacement. What we've heard repeatedly is that it's interesting because of the sheer volume of data, but isn't a representative sample and doesn't provide demographic data. Maggio insists that he's already dealt with those issues and just needs to educate the industry. ErinMedia has patents pending for overlays to its set-top data which use reverse mathematics to make its results correspond to the entire TV viewing universe, since not everyone has a set-top digital cable box, with demographic data.
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 DeLay at least delays attack ads
Houston television stations either declined to run watchdog ads attacking Rep. Tom DeLay (R-TX), or tabled them for further consideration, following complaints from the embattled rep's own representatives. However, despite a statement from at least one station, there has been no threat of legal action should the ads be run as requested. The ads are from the Campaign for America's Future and Public Campaign Action Fund, which had plans to spend a quick 115K on ads targeting both DeLay and Ohio rep Bob Ney (R-OH). A DeLay attorney sent a letter to the stations calling the commercials "...reckless, malicious and false, casting Mr. DeLay in a false light by accusing him of unsubstantiated criminal conduct. Such accusations are actionable." The letter also said, "We demand that you refuse or otherwise cease airing the advertisement, so as to avoid any liability..." David Donnelly of Public Campaign Action Fund countered, "When powerful lawmakers corrupt the political process and get caught, they often try to bully the media to try to prevent them from doing their job. We can't let him win."
TVBR observation: Aren't political ads fun? The business of broadcasters is to sell things like toothpaste, which presumably is used by folks from one end of the political spectrum to the other. Controversy of the sort that may split an audience in half is not part of a standard business model. Nor should it be a station's job to routinely verify the content of an ad such this - - which was already sourced to the Associated Press and the Washington Post. When stations start making political ad choices in their role as gatekeeper, they run a real risk of bias or the appearance of bias. If the ads are turned down altogether, there are other risks - - politicians in particular don't like to be turned down for air time, and they are in a position to do something about it. All in all, we think it is better to run everything which is not clearly false or actionably indecent.
DeLay campaign spending may have to start early
Three challengers are looking to make a run for Tom DeLay's seat in Congress - - three Republicans, that is. The seat is also in the sights of a former Democratic US Representative - - Nick Lampson, one of the ones who lost a seat after the controversial mid-decade Texas redistricting went into effect. In fact, it was part of the effort to do just that that earned DeLay his Texas indictment. But before DeLay gets to that, he'll have to win a primary battle. One of the in-party challengers - - lawyer Tom Campbell - - has street credibility among local Republican, having worked for candidates and also having served in the administration of President Bush No. 41, where he lawyered for the National Oceanic and Atmospheric Administration. So far his campaign is self-funded and holding under 100K. DeLay's last report showed over 1M in the bank.
TVBR observation: Although bruising primaries can be destructive to a candidate, they can also be a bracing preseason run which helps prep a candidate for the general election. However, DeLay certainly does not fall into the category of politician who needs to get a little extra experience. If Campbell can mount any challenge at all (far from a given), he could warm up lines of attack which may be useful to the eventual Democratic challenger. And he could force some early withdrawals from the DeLay warchest. All of which means more money in the bank for the local media community...
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Comcast signs on for LPMs
Nielsen Media Research announced that Comcast Spotlight, the ad sales arm of cable giant Comcast Cable, has signed a six year agreement for Local People Meter services, consolidating into a single agreement Comcast's subscriptions to LPM services in all 10 markets where LPMs are operating or will be in the coming months. LPMs are now operating in nine markets, after Detroit and Dallas quietly launched last week (see Ratings & Research). Still to come this year is Atlanta. Comcast Spotlight Sr. VP/GM Hank Oster says the agreement is part of the company's investment in the latest technologies to enhance the value of spot cable advertising. "In Comcast Spotlingh markets where LPMs are deployed, we already have seen this more accurate data demonstrate an overall increase in viewership to cable sources," he said.
 Koppel is keeping busy
Since leaving ABC News, it's anything but retirement for Ted Koppel. Not only is he producing and hosting long-form shows for Discovery Channel (1/5/06 TVBR #3), he's now signed on as a contributing columnist with the New York Times and as a senior news analyst for National Public Radio. "There is no more respected or influential forum in the field of journalism than The New York Times. I look forward, with great anticipation, to contributing to its Op-Ed page," said Koppel. No precise schedule for Koppel's writing was announced. Rather, his column will appear "periodically." His first will appear in the Sunday, January 29th issue. At NPR, he'll be contributing analysis and commentary for such programs as "Morning Edition" and "All Things Considered" about 50 times a year.
Pittsburgh TVs share news
Sinclair's Fox WPGH-TV 53 partnering with Cox Television's NBC WPXI-TV 11 for news. One-air staff seen on WPXI's half-hour newscast at 11PM will also be seen on WPGH for a full hour starting at 10PM under the arrangement. "We have so many resources already in place," said WPXI VP/GM Ray Carter. "We plan to add even more people for the 10 PM effort. Channel 11 has served the Pittsburgh news audience for nearly fifty years. The idea of having our people and our news now on FOX 53 is exciting, indeed. The viewer will be the big winner in all of this." Among the clear non-winners are the 35 members of the WPGH on-air and production staff who are being let go, according to the Pittsburgh Tribune Review.
TVBR observation: This is basically an odd sort of LMA which allows Cox two local news programs while holding only one license in the market. However, it is virtually guaranteed to not go over very well on the Democratic side of the FCC's 8th Floor, where it will likely be seen as yet another diminishment in diversity of news sources. The fact that one of the participants is Sinclair, the TV group the left loves to hate, is only likely to add fuel to the fire.
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| Cable Business Report TM |
 Lifetime fires back at EchoStar
Lifetime Television remains at loggerheads with EchoStar, which removed Lifetime and Lifetime Movie Network from its Dish Network satellite service on New Year's Day (1/3/06 TVBR #1), so the cable network is fighting back by trying to get its fans to switch to the other major satellite TV provider, DirecTV, or to a local cable system which is carrying Lifetime. Radio, TV and print ads are running in five markets - - Houston, Albuquerque, Orlando, Raleigh-Durham, NC and Greenville, SC - - urging Dish subscribers to "Take back your Lifetime" and "Switch from Dish." In addition to partnering with DirecTV, Lifetime has teamed up with Comcast, Time Warner Cable, Charter, Bright House, USDTV and Verizon's FIOS-TV in various markets to promote the switch away from Dish. "We're still trying to reach a fair and reasonable agreement with Dish. But as long as Lifetime is kept off the air by Dish, we have no choice but to fight back and help women take back their Lifetime," said Betty Cohen, President and CEO of Lifetime Entertainment Services.
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Ad Business Report TM
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Hilton to launch TV effort
Hilton Hotels is returning to television with its first major campaign for its flagship brand in ten or so years. The animated "Travel should take you places" campaign launches 1/15 on primetime shows including "Desperate Housewives" and C.S.I. The Young & Rubicam-produced spots show simple line animation of individuals and couples enjoying life and feature music from young musicians such as Ben Folds Five. In the line-drawn scenes a businessman throws papers in the air to relax on a hammock, a parent builds a sand castle with a child and a couple watch a sunset. It is Y&R first effort for Hilton. The Hilton brand will double its marketing budget this year with the television, print and online, according to a Reuters story.
Neuharth, Johnson, Keough, Luce
elected to Advertising Hall of Fame
The American Advertising Federation (AAF) announced the election of four advertising legends to the Advertising Hall of Fame:
-- Robert Johnson, founder, BET, for originating the nation's most recognized and successful African-American cable television company;
-- Donald Keough, retired president & COO, the Coca Cola Company, for shaping the advertising image of one of the world's most iconic companies during his extraordinary tenure at its helm;
-- Henry Luce, co-founder, TIME Magazine; founder of Fortune, Life and Sports Illustrated magazines (1898-1967), receiving the award posthumously for creating many of the country's most enduring and respected publishing titles;
-- Al Neuharth, founder, USA Today & the Freedom Forum; for conceiving of a nationwide newspaper and building the nation's preeminent institution celebrating free speech.
The recipients will be officially inducted into the prestigious Advertising Hall of Fame at an awards luncheon 3/4, at New York's Waldorf-Astoria hotel.
 A-B to debut ads in SI's swimsuit issue
Anheuser-Busch is planning seven pages of ads in Sports Illustrated's swimsuit issue and a promotion around the issue and around SI model Molly Sims. The swimsuit edition, due out 2/14, reaches more than 64 million U.S. adults/40 million males. A-B is hosting parties in 50 U.S. cities the day before the issue hits the stands and is sponsoring a contest.
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| Media Markets & Money TM |
 SBS delays TV closing
Spanish Broadcasting System has extended the deadline for closing the purchase of its first television property, WDLP-TV Key West-Miami (7/14/05 RBR #137), until February 28th. Under the amendment filed with the SEC, SBS is paying an additional 550K for two extensions - - 250K previously and 300K for this extension - - bringing the total price to 37.55 million.
TVBR observation: Judging by the comments in SBS' recent conference calls, some of its investors would be most happy if this deal never went to closing at all. They want Raul Alarcon to stay focused on the business he already knows - - radio.
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| Washington Media Business Report TM |
 Ex-commish has a new role
Far from terminating her, California Gov. Arnold Schwarzenneger is hiring former FCC Commissioner Rachelle Chong. She will bring her telecommunications background to a new post on the California Public Utilities Commission. She had been operating her own mediation, arbitration and expert witness firm. She served as a Republican member of the FCC from 5/94 until 1/97.
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| Ratings & Research |
First LPM data from Detroit & Dallas
Both markets launched last week (1/5) with none of the controversy that had bombarded Nielsen elsewhere last year. Nielsen says the first Local People Meter data shows viewership up in both Detroit and Dallas. Viewing levels for people 2+ were 14% higher in Dallas the first week and 18% higher in Detroit. Nielsen said most major demos, except 55+, showed higher viewing levels for the full day, with 18-34 particularly strong.
| Here's more data |
Another KingWorld tie
Once again, "Wheel of Fortune" and "Everybody Loves Raymond" tied for #1 in the syndicated TV ratings, provided to TVBR by the Syndicated Network Television Association (SNTA), based on data from Nielsen Media Research. Both Wheel and Raymond are distributed by KingWorld.
| View the Chart |
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| Stock Talk |
Coke loses its fizz
A downgrade of Coca-Cola by Goldman Sachs and of JPMorgan Chase by Piper Jaffray sent the Dow Industrials down 81 points, or 0.7%, to 10,962 - - and carried the rest of the market lower as well.
Most TV stocks were lower. McGraw-Hill fell 3.8% and Emmis dropped 3.1% as the day's poorest performers.
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| Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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3.66
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-0.22
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LIN TV
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TVL
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10.91
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-0.01
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Belo
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BLC
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22.09
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-0.11
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McGraw-Hill
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MHP
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47.06
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-1.84
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| CBS CI. B |
CBS |
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25.99
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-0.19
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Media General
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MEG
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50.17
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-0.36
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| CBS CI. A |
CBSa |
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26.03
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-0.24
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Meredith
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MDP
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53.16
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-0.48
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Clear Channel
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CCU
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31.73
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+0.12
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News Corp.
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NWS
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16.97
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-0.15
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Disney
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DIS
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25.64
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+0.08
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Nexstar
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NXST
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4.29
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+0.06
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Emmis
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EMMS
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17.91
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-0.58
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NY Times
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NYT
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27.18
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-0.34
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Entravision
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EVC
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7.06
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-0.01
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Paxson
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PAX
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0.94
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-0.01
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Fisher
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FSCI
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42.10
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unch
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Saga Commun.
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SGA
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10.07
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-0.11
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Gannett
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GCI
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63.02
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+0.24
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SBS
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SBSA
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5.40
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+0.13
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Gen. Electric
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GE
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35.00
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-0.43
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Scripps
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SSP
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49.53
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-0.24
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Granite
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GBTVK
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0.23
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-0.02
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Sinclair
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SBGI
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8.66
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-0.18
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Gray
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GTN
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9.33
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-0.19
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Time Warner
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TWX
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17.48
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-0.09
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Gray, C1. A
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GTNa
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8.98
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+0.09
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Tribune
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TRB
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31.21
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+0.23
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Hearst-Argyle
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HTV
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23.98
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-0.02
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Univision
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UVN
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31.81
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+0.48
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Jeff-Pilot
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JP
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58.47
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+0.22
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Wash. Post
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WPO
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768.51
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-14.74
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Journal Comm.
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JRN
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13.78
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-0.21
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Young
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YBTVA
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3.75
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-0.03
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Liberty Corp
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LC
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46.98
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unch
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-
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-
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- |
-
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-
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to tvnews@rbr.com
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Below the Fold
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Ad Business Report
Hilton to launch TV effort
Returning to television with its first major campaign...
Washington Media Business Report
Ex-commish has a new role
Former FCC Commissioner Rachelle Chong Goes to work for Gov. Schwarzenneger...
Ratings & Research
First LPM data from
Detroit & Dallas
Markets launched last week none of the controversy...
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NATPE Day Time Planner
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The following will be attending NATPE. Call or email to make your appointment in advance.
The Television Syndication Company, Inc.
Cassie M. Yde, President
THE Hotel at Mandalay Bay,
Phone at THE Hotel: 877-632-7800,
Cell Phone: 407-252-7386
Email: Cassie@tvsco.com
Patrick Communications
Larry Patrick, President,
Greg Guy, Vice President,
410-740-0250,
larry@patcomm.com,
greg@patcomm.com
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RBR - Radio News
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Auction No. 62:
6.7M and counting...
So far, 496 bids have been submitted and a just shy of a virtual 6.7M has been committed to the 171 FM CPs up for auction at the FCC. 156 of the permits are in the hands of provisional winners, while 15 are still nominally being held by the Commission. Due to bidding credits held by a number of contestants, the actual hard cash on the table is just shy of 5.6M. The top bids so far have been credited to CPs for Indian Wells CA and Satellite Beach FL, both in at 360K (and both, with credits, worth 234K net). Indian Wells Broadcasting has the inside track on the CA permit, with James B. Benns on top in Florida. The FCC had planned to conduct two rounds of bidding yesterday, but cut off after one, due to technical problems.
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TVBR Radar 2005
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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NBC looking to
lighten O&O portfolio
TVBR sources confirm that NBC Universal is shopping four of its smaller market O&O stations - - not so much for the 600 million or so that they're expected to bring, but so that NBC can look to buy and build NBC/Telemundo duopolies in growth markets with large Hispanic populations. Birmingham, AL, Columbus, OH, Providence, RI and Raleigh, NC don't fit that profile, so NBC is looking for buyers. UBS is said to be handling the sell-off. News of NBC's plans to sell the four stations
TVBR observation: If you are a buyer in TV, there are plenty of tires to kick on the lot. In the December 2005 issue of Radio & Television Report, we noted that 20 stations had been publicly been put on the auction block by Emmis, Raycom and Nexstar. Since then Raycom has announced one station sale, so these four from NBC put the count at 23. How many more are being shopped more quietly? Here's the NBC shopping list of stations and their stats -
01/12/06 TVBR #8
IPG signs for PPM
The Interpublic Group (IPG), which represents more than 30% of all of radio's national spot dollars, has committed to using the ratings provided by the PPM to plan and buy radio once Arbitron deploys its electronic measurement service. However, this does not commit Arbitron to a specific timetable for PPM deployment. Jean Pool, EVP/Director of North American Operations, Universal McCann "Wonderful. It's simply better research. And God only knows we are so far behind Europe and much of the rest of the world in the research product that we value our inventory on."
RBR observation: This is a great vote of confidence from IPG. When more agencies make similar proclamations of intent-to-use, the case should become easier to make with broadcasters - - and Nielsen. Bottom line - - agencies want reliable data to make their clients the most ROI. PPM may not be proven as perfect yet, but it's much, much more accurate than diaries.
01/12/06 RBR #8
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Sales Manager
Reno Radio Representatives is seeking candidates. The FM station is one of the markets best rated and the company encourages both women and minorities to apply.
See Radio Careers
TVBR Searching for 2 Pros
To join the best TV business publication in the media B2B today. Searching for one (1) Top flight Editor that does not need direction and one (1) Top Experienced Sales person that knows how to Sell/Market quality and wants to make money. Team work expected. Only the pros need apply as TVBR's expansion is now. Confidentiality honored by TVBR publisher Jim Carnegie (813 909 2986) Email qualifications to publisher@rbr.com
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Marrs 
Two Fox News Channel anchors are relocating to WNYW-TV "Fox5" New York. Beginning Tuesday, January 17th, Dari Alexander and Rick Folbaum will anchor "Fox5 News at 6 P.M." Long-time anchors Rosanna Scotto and Ernie Anastos will continue to anchor the 5:00 and 10:00 pm editions.
